(Reuters) -Videogame maker Electronic Arts is nearing a deal to go private for as much as $50 billion, the Wall Street Journal reported on Friday citing people familiar with the matter.
EA shares surged more than 14% on the news.
A group of investors including private-equity firm Silver Lake and Saudi Arabia’s Public Investment Fund could unveil a deal for the publisher best known for its sports games as soon as next week, WSJ said.
Electronic Arts, Silver Lake and the PIF did not immediately respond to Reuters’ requests for comment.
EA had launched “College Football 26” in July, hoping to build on the success of last year’s edition, which became one of the best-selling titles of 2024.
It unveiled the first trailer for “Battlefield 6”, placing a big bet on the title to reinvigorate the franchise after the previous installment fell short of fan expectations.
“Battlefield 6” is set to launch in EA’s current fiscal year, with analysts expecting the game to sell millions of copies.
Electronic Arts, which has a market value of around $42 billion, has forecast second-quarter net bookings below Wall Street expectations, pressured by uncertain consumer spending on its core sports portfolio amid a challenging economic environment.
(Reporting by Juby Babu in Mexico City; Editing by Krishna Chandra Eluri)
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